'Staring down the barrel at higher costs': UK businesses face uncertain future over US tariffs

• UK exporters now face a 15% tariff starting Tuesday morning (5am GMT), up from the 10% rate agreed under a previous UK-US deal, with officials warning businesses are 'staring down the barrel at higher costs'
• The EU has put ratification of its US trade deal on hold, citing the need for 'clarity and legal certainty' as Trump warned countries that 'play games' with the Supreme Court decision will face 'much higher tariffs'
• The tariffs operate under US section 122 law, limiting such action to 150 days without Congressional approval, while the UK government says 'nothing is off the table' regarding potential retaliatory measures

Summary

UK businesses face significant uncertainty as President Trump's 15% global tariff takes effect Tuesday, February 24, 2026, following the US Supreme Court's Friday ruling striking down his "Liberation Day" tariffs policy. The new rate represents a 5% increase over the recently negotiated 10% UK-US trade agreement.

Key Impacts:

• British exporters will face 15% tariffs on goods entering the US starting 5am GMT Tuesday
• Manufacturing trade body Make UK urgently requests clarity on UK export treatment
• British Chambers of Commerce warns UK businesses are "staring down the barrel at higher costs"
• Uncertainty surrounds whether previous UK agreements on steel and automotive trade will be honored

Government Response:

• UK Prime Minister's office remains hopeful the US will honor the "preferential deal"
• Business Secretary Peter Kyle held weekend discussions with US counterpart Jamieson Greer
• UK government refuses to rule out retaliatory tariffs, stating "nothing is off the table"
• Discussions ongoing at all levels between US and UK officials

Global Implications:

• EU suspended ratification of its US trade deal, citing need for "clarity and legal certainty"
• European Parliament trade chief Bernd Lange stated "nobody knows what will happen"
• Trump warned countries attempting to circumvent tariffs face "much higher" rates
• Stock markets continued sell-off across Europe and US on Monday

The tariffs operate under US section 122 law, limiting duration to 150 days without Congressional approval. Democrats plan legislation requiring refunds with interest for paid tariff amounts.